Table of Contents,
- 1 Overview
- 2 Steps to become FedEx Contractor
- 3 Custom Critical Owner Operator
- 4 Ground Independent FedEx Contractor
- 5 Home Delivery Independent Contractor
- 6 Types of Opportunities
- 7 Local pickup and delivery (P&D) business opportunities
- 8 Linehaul business opportunities
- 9 Contracting Standards
- 10 Agreement terms
- 11 Transacting and dealing with FedEx Ground
- 12 FedEx Contractor Salaries
- 13 What is the salary for an Independent Contractor at FedEx?
- 14 What company gives the highest salary for the Independent Contractor position?
- 15 What company pays the lowest salary for the Independent Contractor position?
- 16 FAQS
- 17 What is the relation between FedEx Ground and the service providers?
- 18 Is it a franchise opportunity?
- 19 What is the responsibility of a service provider?
- 20 How are the service providers compensated?
- 21 Do business proprietors have to be qualified to operate a tractor/delivery automobile and be certified to drive?
- 22 Who employs the drivers?
- 23 Who presents uniforms?
- 24 Who offers insurance plans for trucks, liability, etc.?
- 25 Does FedEx Ground provide a car lease program?
- 26 Does FedEx Ground provide base plates?
- 27 How is a pickup and transport gotten in a smaller service region defined?
- 28 Is there a maximum variety of smaller carrier areas I ought to contract for?
- 29 How would I find present day service companies selling their commercial enterprise or assets?
FedEx is one of the greatest delivery organizations in the world. FedEx provides a range of services, together with ground, air, and global delivery. FedEx additionally gives FedEx Ground Freight, FedEx Home Delivery Mail Service, FedEx Express Freight, FedEx International Priority, and different specialty services.
All of these require an ISP (Independent Service Provider) or IC (Independent Contractors) to grant the carrier on behalf of FedEx. However, FedEx has a variety of operating requirements, and FedEx mandates that their ISP or ICs have to observe these.
Steps to become FedEx Contractor
Here are four Things You Can’t Forget When Becoming a FedEx Independent Contractor or Independent Service Provider.
- FedEx Independent Contractors Requirements
Ground contractors transport applications between FedEx ground hubs on long-haul routes. You should grant your tractor (or rig), but FedEx will supply the trailer. As a floor contractor, you’re accountable for your non-public and commercial costs.
The following are the requirements if you want to come to be a FedEx Insurance Specialist:
- At least one year of industrial using ride inside the closing 3 years is required;
- Have no history of drug or alcohol testing;
- Have a legitimate industrial driver’s license;
- Be able to cross the border into Canada.
- FedEx Independent Contractors Responsibilities
If you are an independent contractor who is fascinated in working with FedEx, you have a few selections at your fingertips. Which you select relies upon your entrepreneurial interests.
You can contract with FedEx as a Custom Critical owner-operator, floor impartial contractor or domestic delivery independent contractor.
There are actually three principal sorts of FedEx impartial contractors, and their obligations are the following:
Custom Critical Owner Operator
These are FedEx Custom Critical’s care employees. If you’re willing to work difficult and have your auto (or several), this may additionally be the job for you. Custom Critical owner-operators make up FedEx’s complete Custom Critical fleet. If you own or graph your very own vehicle, you may qualify for a FedEx owner-operator position.
Some eligibility necessities range depending on whether you own a cargo van, small straight truck, giant straight truck or tractor-trailer, however the absolute must-have qualifications encompass the following:
- Three or fewer shifting violations in the remaining three years;
- A most of one shifting violation in the final year;
- Passing a bodily and drug test from the U.S. Department of Transportation;
- A applicable category industrial driver’s license;
- No document of a preventable accident ensuing in death, serious damage or payout higher than $100,000;
- No record, quotation or conviction of the usage of a hand held cellular telephone whilst driving in the final year;
- No felonies whose clearance—completion of parole, probation, incarceration or a court-ordered diversion program—occurred within the final seven years;
- No DUIs or DWIs within the last five years; and
- No misdemeanors in the final three years.
Ground Independent FedEx Contractor
People who work as floor independent contractors transport applications on the “long-haul” FedEx floor route. You’ll want your tractor, but FedEx will supply a trailer. In this job, you are responsible for your costs. Ground contractors cross programs on the long-haul routes between FedEx floor locations. You have to grant your very own tractor (or rig), but FedEx supplies the trailer. As a ground contractor, you are responsible for your personal business-related expenses.
The skills for work as an unbiased contractor for FedEx Ground include:
- At least one 12 months of commercial using ride inside the remaining three years;
- Have no report of advantageous alcohol or drug test;
- Have a contemporary industrial driver’s license; and
- Be able to move the border into Canada.
Home Delivery Independent Contractor
This one’s precisely what it sounds like: You’re responsible for choosing up packages and for their transport to homes. You should rent your personal shipping van and select up the tab on fuel, insurance plan and different charges related to your business.Delivering things to people’s doors! A domestic transport impartial contractor drives along a route and provides packages. You should personalize your car and bear all the associated commercial enterprise expenses in this position.This one’s exactly what it sounds like: You’re responsible for picking up programs and for their transport to homes. You should lease your very own delivery van and choose up the tab on fuel, insurance and different charges associated with your business.
Other eligibility requirements for working as a domestic shipping contractor include:
- At least one year of commercial driving journey within the remaining three years;
- Have no document of positive alcohol or drug test;
- Have a present day commercial driver’s license; and
- Be capable of crossing the border into Canada.
- Becoming a Contractor With FedEx
If you suit one of the above positions and you are interested in pursuing a contract with FedEx, you first have to get in contact with a contractor sourcing specialist, both by using calling 1-866-711-3599 or filling out the contact shape on FedEx’s agency website.
You must additionally fill out FedEx’s Custom Critical online form, which is additionally located on the website. The form requests records along with your:
- Social Security number;
- Home address records for the remaining three years;
- Current driver’s license number;
- Driver’s license history for the final three years;
- Employment records for up to 10 years;
- History of traffic accidents, violations and convictions from the closing three years;
- Criminal history; and
- Military history.
Types of Opportunities
Contracting with FedEx Ground, independent corporations furnish two types of services to FedEx Ground and its customers:
- Pickup and Delivery (P&D)
Using trucks or small trucks, selecting up applications from shippers and transporting to the neighborhood FedEx Ground station – and, from the vacation spot station, turning in to commercial enterprise and residential recipients
Transporting FedEx Ground owned trailers over the road from station to hub, hub to hub, and hub to station — and, in some cases, between purchaser places and stations or hubs (“spotted trailers” or “spots”)
Each enterprise contracts to furnish providers for linehaul runs and spots, or pickup and shipping services for a contracted carrier area. These companies purchase or rent their personal vehicles and are accountable for hiring and educating drivers and staff, and planning and executing the day-to-day operations.
As FedEx Ground, a FORTUNE World’s Most Admired Company, continues to enjoy sustained community and market share growth, the companies that contract with FedEx Ground have most appropriate opportunities to grow as well.
Along with a contractual relationship with FedEx Ground comes:
- Outstanding revenue potential
- Flexible enterprise operations
- Access to resources
Local pickup and delivery (P&D) business opportunities
The explosive boom of e-commerce is leading to unheard of opportunities for P&D agencies to evolve, as an increasing number of dense service areas supply opportunities for greater efficiency, flexibility and profitability.
Service companies for P&D offerings can advantage from:
- Package volume growth
- Contracted service vicinity of each commercial and residential postal codes
- Weekly revenue based on client demand and business results
- Optional seasonal incentives
- Third-party dealer discounts — truck maintenance, tires and more
Linehaul business opportunities
A rapidly expanding network of regional hubs and nearby stations creates a want for agencies that can furnish protected and reliable over-the-road service.
Service companies for linehaul offerings can benefit from:
- Package quantity growth
- Weekly contract on all miles — loaded or empty
- Variable mileage rate by means of outing leg distance (the shorter the trip, the greater the rate)
- Optional seasonal incentives
- Drop & hook freight
- Network of on-site fueling stations at wholesale prices
- Third-party supplier discounts — truck maintenance, tires and more
FedEx Ground contracts only with groups that are installed beneath state/provincial regulation as for-profit companies and not, for example, with LLCs, LLPs, sole proprietorships, partnerships or restricted partnerships (LTDs).
As unbiased businesses, service vendors rent their very own personnel, bearing all responsibilities for:
- Employer-related expenses, along with wages, salaries, benefits, employment taxes, unemployment insurance, workers’ compensation coverage, and any others mandated through local, state/provincial and federal governments.
- Payroll deductions, maintaining payroll and employment records, and complying with all relevant local, kingdom and federal/provincial laws (including wages, deductions, overtime, relaxation and meal periods, etc.) consisting of the U.S. Fair Labor Standards Act as applicable
- Training their personnel
- Ensuring employees are legally licensed to work in the U.S. (or Canada as appropriate)
The responsibilities of both FedEx Ground and provider carriers are set forth in contractual agreements. In general, for service providers, settlement terms include the following:
- Safety and Compliance
Maintain a security and compliance software to ensure that its personnel are educated with respect to secure operation of automobiles in accordance with the regulation and contractual standards
- Good standing
Maintain its registration and stay in right standing in states/provinces in which it is integrated and in which it conducts business
- Service reliability
Pick up and supply all applications to meet consumer desires for timeliness; and for linehaul operations, agree to furnish timely motion of trailers between locations; committing to supplying superior purchaser provider and to accepting the challenges of that responsibility
- Vehicle preservation
Keep vehicles in protected working situation pursuant to the U.S. Federal Motor Carrier Act and different applicable, government-mandated security standards
Ensure all services are supplied in a manner steady with client expectations and the FedEx Ground brand
- Business commitment
Become knowledgeable about offerings and operations of FedEx Ground, and preserve verbal exchange with FedEx Ground to pick out possibilities for future growth
To make sure that the FedEx Ground community is well-positioned to maintain and extend its client base, FedEx Ground:
- Continuously invests in company consciousness during North America
- Obtains and continues a various customer base, with a nearby and country wide sales force that stimulates growth
- Creates and maintains facilities and facts systems to make sure programs are transported effectively for the duration of the network
Transacting and dealing with FedEx Ground
To make sure that contractual and operational questions are addressed quickly and with the right people, carrier carriers agree to designate the following representatives to communicate with FedEx Ground:
- Authorized officer:
An officer of the organization detailed to address the business’s contractual or financial issues
- Business contact:
An person exact to be the contact factor for day-to-day operational issues
A Business Development Solutions department at FedEx Ground acts as an interface between FedEx Ground and carrier providers. Business Development Solutions specialists are handy to reply to questions regarding contract terms and conditions.
FedEx Contractor Salaries
FedEx Independent Contractors earn $51,000 annually, or $25 per hour, which is equal to the national average for all Independent Contractors at $51,000 annually and 26% lower than the national salary average for all working Americans. The perfect paid Independent Contractors work for Holland America Line at $180,000 yearly and the lowest paid Independent Contractors work for Rockford Register Star at $16,000 annually.
What is the salary for an Independent Contractor at FedEx?
The salary for Independent Contractor at FedEx is $57,000 annually.
What company gives the highest salary for the Independent Contractor position?
Holland America Line pays the highest salary for the Independent Contractor position at $190,000 annually.
What company pays the lowest salary for the Independent Contractor position?
Rockford Register Star pays the lowest salary for the Independent Contractor position at $17,000 annually.
What is the relation between FedEx Ground and the service providers?
FedEx Ground is a federally regulated motor service that specializes in small package deal information, transportation, pickup and delivery, and offers services to the United States and Canada.
FedEx Ground contracts with independent companies that utilize their personnel to grant bundle pickup, shipping and/or transportation services to clients within an agreed-upon carrier area. These unbiased businesses, or carrier providers, hold authority to determine the first-class skill to meet patron expectations and demands, consisting of complete discretion over and responsibility for transport work, vicinity configuration, route design, shipping sequence, kind and quantity of equipment, and staffing and personnel decisions.
Is it a franchise opportunity?
No. FedEx Ground and the provider companies do not have a franchisor-franchisee relationship. As a corporate entity and employer, the service companies have the sole responsibility to decide how best to ensure that the agreed-upon outcomes are met.
What is the responsibility of a service provider?
Contracting with FedEx Ground, independent companies provide two kinds of offerings to FedEx Ground and its customers:
Pickup and Delivery (P&D) — Using vehicles or small trucks, selecting up packages from shippers and transporting to the neighborhood FedEx Ground station — and, from the destination station, handing over to commercial enterprise and residential recipients
Linehaul — Transporting FedEx Ground-owned trailers over the street from station to hub, hub to hub, and hub to station — and, in some cases, between purchaser locations and stations or hubs (“spotted trailers” or “spots”)
How are the service providers compensated?
Service providers are paid an agreed-upon amount, primarily based on the extent of stops and programs delivered and other terms furnished for in the settlement with FedEx Ground. Payments for services rendered are made on a weekly basis.
Do business proprietors have to be qualified to operate a tractor/delivery automobile and be certified to drive?
No. The business owners are no longer required to operate, or be licensed to operate, motor vehicles. However, an enterprise owner who desires to power underneath FedEx Ground’s motor service authority may additionally do so if he or she meets all agreed-upon safety requirements and completes the driver qualification process.
Who employs the drivers?
As independent businesses, service companies rent their personal personnel, bearing all obligations for:
- Employer-related expenses, which include wages, salaries, benefits, employment taxes, unemployment insurance, workers’ compensation coverage, and any others mandated by way of local, state/provincial and federal governments
- Payroll deductions, preserving payroll and employment records, and complying with all applicable local, nation and federal/provincial legal guidelines (including wages, deductions, overtime, relaxation and meal periods, etc.) which include the U.S. Fair Labor Standards Act as relevant
- Training their personnel
- Ensuring personnel are legally licensed to work in the United States (or Canada as appropriate)
Who presents uniforms?
Each settlement with FedEx Ground consists of its personal apparel standards. Generally speaking, however, the provider companies agree to grant FedEx Ground-approved apparel for all personnel who have contact with the public below the terms of the agreement.
Who offers insurance plans for trucks, liability, etc.?
Under the terms of the agreement, it is a service provider’s accountability to obtain insurance plan coverage, including, but no longer limited to, public liability (automobile/truckers bodily harm and property harm coverage) and workers’ compensation, regular with the agreed-upon minimum insurance requirements. FedEx Ground keeps insurance plan insurance for public liability, and cargo loss and injury risks.
In Canada, carrier carriers agree to reap statutorily required minimum third-party liability, automobile coverages, and cargo insurance.
Does FedEx Ground provide a car lease program?
No. FedEx Ground does not hire motors to service providers. It is the responsibility of the provider to obtain the fabulous equipment to grant services under the agreement.
Does FedEx Ground provide base plates?
A carrier provider may additionally yearly register its own tractors to obtain base plates or it may additionally authorize FedEx Ground to attain base plates on its behalf. If FedEx Ground obtains the base plates, the carrier issuer is of the same opinion to supply all documentation required by means of the registering country and to endure the value of the registration and base plate.
How is a pickup and transport gotten in a smaller service region defined?
A shriveled service location can consist of one or more contiguous full or partial ZIP/postal codes and/or road address ranges, in a geographic place that is each enterprise and residential. Contracted carrier areas are a problem to minimum and most end scale guidelines, relying on station size.
Is there a maximum variety of smaller carrier areas I ought to contract for?
A most of one shriveled service region can be shriveled for, per provider provider, per station.
How would I find present day service companies selling their commercial enterprise or assets?
While FedEx Ground does not facilitate the sale or purchase of an present provider provider’s enterprise or assets, under positive situations and in select markets, potential carrier vendors that have expressed activity in contracting with FedEx Ground and have the essential ride and economic capability to meet the contracting standards may additionally have the possibility to request that FedEx Ground share their contact records with groups currently shrunk to grant services for FedEx Ground. This is facilitated within the “Assignee Marketplace”. Those businesses may additionally contact the prospective carrier carriers directly if they are interested in discussing the phrases of any conceivable assignment. FedEx Ground is no longer a celebration to those discussions or transactions.